Claims Adjuster Test Study Guide 2026

Errors and Omissions (E&O) insurance is a type of professional liability insurance that protects professionals from claims of negligence or mistakes in their professional services, such as lawyers, insurance agents, and real estate agents. Dentists, along with other medical professionals, require Medical Malpractice insurance. This is a specialized form of professional liability coverage tailored to the unique risks and liabilities associated with healthcare services.

The four essential parts of a legal contract are typically offer, acceptance, consideration, and legal purpose/competent parties. An endorsement, while a part of an insurance policy, is an amendment or addition to an existing contract, not one of the fundamental elements required to form a contract itself.

Worker's compensation insurance is designed to cover economic losses resulting from work-related injuries, such as medical expenses, lost wages (disability benefits), and rehabilitation costs. However, it typically operates on a no-fault system and does not provide coverage for non-economic damages like pain and suffering, which are usually associated with tort claims.

MMI is the medical milestone when a treating physician determines the injured worker's condition has plateaued and no significant additional improvement is expected, triggering evaluation for permanent disability.

Special damages, also known as economic damages, are awarded to compensate for specific, quantifiable monetary losses. This includes medical expenses, lost income, and property repair costs.

Nearly all states that license adjusters require them to complete a certain number of continuing education (CE) hours during each renewal period to ensure they stay current with laws, regulations, and industry practices. These requirements often include a specific number of hours in ethics.